What is a living trust?
Answer: A living trust is a legal arrangement where a person (the grantor) transfers ownership of their assets to a trust and designates a trustee to manage the trust for the benefit of the beneficiaries.
Who can create a living trust?
Answer: Anyone who is of legal age and has the capacity to manage their own assets can create a living trust.
What are the benefits of a living trust?
Answer: A living trust can provide several benefits, including avoiding probate, protecting assets from creditors, avoiding guardianship proceedings, preserving privacy, and allowing for the smooth transfer of assets to beneficiaries.
What types of assets can be placed in a living trust?
Answer: Most any type of asset, including real estate, personal property, bank accounts, stocks, and bonds can be placed in a living trust.
Who can be a trustee of a living trust?
Answer: A trustee can be anyone the grantor trusts, including a family member, friend, or professional.
What happens to the assets in a living trust after the grantor's death?
Answer: Upon the grantor's death, the assets in the living trust will pass to the designated beneficiaries as specified in the trust agreement.
Is a living trust a taxable entity?
Answer: No, a living trust is not a taxable entity. However, the trust's income and capital gains are subject to taxes.
Can a living trust be amended or revoked?
Answer: Yes, a living trust can be amended or revoked by the grantor as long as they have the capacity to do so.
Do I need a lawyer to create a living trust?
Answer: While it is not required, it is recommended to consult with a lawyer to ensure that the living trust is properly established and meets all legal requirements.